DGAP-Adhoc

SKW Stahl-Metallurgie Holding AG: New Executive Board of the SKW Metallurgie Group sees significant need for impairment, and implements program for strategic realignment; revenues and EBITDA expected below previous year for H1-2014

SKW Stahl-Metallurgie Holding AG / Key word(s): Restructure of Company/Profit Warning

14.08.2014 19:59

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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New Executive Board of the SKW Metallurgie Group sees significant need for
impairment, and implements program for strategic realignment; revenues and
EBITDA expected below previous year for H1-2014

The new Executive Board of SKW Stahl-Metallurgie Holding AG is currently
reviewing, in the context of a fundamental analysis, all business
activities of the Group. Preliminary assessment and findings indicate
significantly more conservative business developments for certain Group
companies than so far expected.
In this context, the Executive Board has decided to no longer foster the
strategy of backward integration. The Executive Board is currently
reviewing all available options for the Group companies concerned in Bhutan
and Sweden.
In the context of compiling the Group interim financial report as per June
30, 2014, the SKW Metallurgie Group tests for impairment pursuant to
international accounting standards. In this context, extraordinary value
adjustments will be required to an expected tune of EUR 84 million; the
majority of those adjustments concern tangible assets in Bhutan and Sweden
as well as non-tangible assets and impairments of deferred tax assets.
Extraordinary adjustments are non-cash and hence do not have any immediate
impact on the operative business or cash in hand of the SKW Metallurgie
Group. Further extraordinary impairments are currently not expected.

The new Executive Board of the SKW Metallurgie Group has implemented a
comprehensive program for strategic realignment ("ReMaKe"). In the medium
term, this program should on Group level increase revenues and earnings as
well as ensure a sustainably positive free cash flow.

The one-off expenses associated with the realignment are mainly expected in
the EBITDA of H2-2014 (in the single-digit million Euro range). Positive
net earnings contributions are expected as of 2015. A more detailed
quantification of the effects from the program of strategic realignment is
not possible at this stage and will be published after concluding
corresponding analyses, at the latest with the publication of the Group
interim financial report as per September 30, 2014.